Lender reports 7% profit decline as it made ₹478.3 cr. provision for troubled firm Private sector lender Yes Bank reported 7% year-on-year decline in its net profit to ₹1,001.8 crore for the October-December quarter, as it had to set aside funds for its exposure to troubled infrastructure conglomerate IL&FS.
Out of total NPA provision of ₹507.5 crore, provisioning for IL&FS alone was ₹478.3 crore. In addition, the bank had made a provision of ₹92.5 crore, which is 15% on the exposure to IL&FS which is still ‘standard’.
Total gross slippages during the quarter was ₹2,297 crore, of which ₹1,913 crore was on account of IL&FS.
“With regard to the infrastructure conglomerate, we have downgraded the position on account of our exposure to roads and the energy vertical which totals to ₹1,913 crore on which the bank has provided 25% in the current quarter,” Rajat Monga, senior group president, financial markets, Yes Bank, said.
About ₹617 crore of exposure to the group continues to be standard, against which the bank has taken a 15% standard asset provisioning in the current quarter,” he added.